Position of Singapore entities with residential properties wishing to become or becoming converted entities

9.

—(1) No Singapore company which is the owner of any estate or interest in any residential property that is not non-restricted residential property, whether purchased or acquired before, on or after 11th September 1973 shall, on or after 1st October 1976, become a converted foreign company without first seeking and obtaining the written approval of the Controller, in the manner provided in section 26, for such conversion and for the retention of all its estate or interest in all or in one or more of those residential properties which such Singapore company intends should remain vested in the converted foreign company upon such conversion.

[9/2006]

[35/2010 wef 17/01/2011]

(2) No Singapore limited liability partnership which is the owner of any estate or interest in any residential property that is not non-restricted residential property, whether purchased or acquired before, on or after 11th April 2005 shall become a converted foreign limited liability partnership without first seeking and obtaining the written approval of the Controller, in the manner provided in section 26, for such conversion and for the retention of all its estate or interest in all or in one or more of those residential properties which such Singapore limited liability partnership intends should remain vested in the converted foreign limited liability partnership upon such conversion.

[9/2006]

[35/2010 wef 17/01/2011]

(3) No Singapore society which is the owner of any estate or interest in any residential property that is not non-restricted residential property purchased or acquired on or after 11th September 1973 shall, on or after 1st October 1976, become a converted society without first seeking and obtaining the written approval of the Controller, in the manner provided in section 26, for such conversion and for the retention of all its estate or interest in all or in one or more of those residential properties which such Singapore society intends to retain after conversion.

[9/2006]

[35/2010 wef 17/01/2011]

(4) If the written approval sought under subsection (1), (2) or (3) is granted in respect of such conversion and for the retention of all or one or more of the residential properties in respect of which the Singapore entity sought approval, it shall, either before it becomes a converted entity or within a period of 2 years from the date on which it became a converted entity, transfer to any citizen or approved purchaser all its estate or interest —

(a)

in such of its residential properties that are not non-restricted residential properties in respect of which it has not been granted approval for retention under section 26; and

(b)

in all its other residential properties that are not non-restricted residential properties, if any, in respect of which it did not seek approval for such retention.

[9/2006]

(5) If the written approval sought under subsection (1), (2) or (3) is not granted in respect of such conversion or for the retention of all of the residential properties in respect of which the Singapore entity sought approval, the Singapore entity shall not become a converted entity.

[9/2006]

(6) If any Singapore entity becomes a converted entity in contravention of subsection (5) —

(a)

the converted entity shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000;

[35/2010 wef 17/01/2011]

(b)

any person who, by virtue of section 36(3), is guilty of that offence shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 3 years or to both; and

[35/2010 wef 17/01/2011]

(c)

the converted entity shall, within a period of one year from the date on which it became a converted entity, transfer to any citizen or approved purchaser all its estate or interest in every residential property that is not non-restricted residential property owned by it.

[9/2006]

(7) If any Singapore entity becomes a converted entity, without first seeking and obtaining the written approval required under subsection (1), (2) or (3) —

(a)

the converted entity shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000;

(b)

any person who, by virtue of section 36(3), is guilty of that offence shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 3 years or to both; and

(c)

the converted entity shall, within a period of one year from the date on which it became a converted entity —

(i)

transfer all its estate or interest in all its residential properties that are not non-restricted residential properties to any citizen or approved purchaser, other than such part of its estate or interest in respect of which it has been granted approval for retention as provided in sub-paragraph (ii); and

(ii)

seek and obtain the approval of the Minister under section 25 for the retention of such part of its estate or interest in its residential properties that are not non-restricted residential properties as are not transferred as provided in sub-paragraph (i).

[9/2006]

(8) Where —

(a)

a converted foreign company to which subsection (4) applies has not, at the expiration of a period of 2 years from the date on which it became a converted foreign company, transferred to any citizen or approved purchaser all its estate or interest in the residential properties (that are not non-restricted residential properties) still remaining vested in it and in respect of which approval for retention was not sought or, if sought, was not granted under section 25 or 26; or

(b)

a converted foreign company to which subsection (6) or (7) applies has not, at the expiration of a period of one year from the date on which it became a converted foreign company, transferred to any citizen or approved purchaser all its estate or interest in the residential properties (that are not non-restricted residential properties) still remaining vested in it and in respect of which approval for retention was not sought or, if sought, was not granted under section 25 or 26,

the Minister may, by a direction in writing, require such converted foreign company to dispose of all its estate or interest in such remaining residential properties by transferring the same to any citizen or approved purchaser within a period of not less than 6 months from the date of service of such direction by the Minister.

[9/2006]

(9) A direction given by the Minister under subsection (8) shall be served on the Controller and on such converted foreign company and its subsisting mortgagees or chargees (if any) who appear as such in the relevant records in the Land Titles Registry or the Registry of Deeds of the Authority, as the case may be.

[9/2006]

(10) At the expiration of the period of 6 months mentioned in subsection (8), the Minister may, in his discretion, upon application (with reasons or grounds in support) being made (not later than 30 days of such expiration) by a converted foreign company or any of its mortgagees or chargees who appear as such in the relevant records in the Land Titles Registry or the Registry of Deeds of the Authority, as the case may be, grant such extension of time as he may consider fit, for the transfer to any citizen or approved purchaser of all its estate or interest in such residential properties that are not non-restricted residential properties and in respect of which approval was not sought for the retention thereof or, if sought, was not obtained under section 25 or 26.

[9/2006]

(11) Where a converted foreign company which is directed under subsection (8) to dispose of its estate or interest in any residential property does not satisfy the Controller that it has transferred the same within the period of 6 months specified in that subsection or any extended period specified in subsection (10), the Minister may issue to the Controller a notice to attach and sell the estate or interest in that property, and a copy of such notice shall be served on the converted foreign company which is the owner of the estate or interest in the residential property and its subsisting mortgagees or chargees (if any) who appear as such in the relevant records in the Land Titles Registry or the Registry of Deeds of the Authority, as the case may be.

[9/2006]

(12) Subsections (8) to (11) shall apply, with the necessary modifications, to the procedure for the disposal of any estate or interest in residential property owned by a converted foreign limited liability partnership or a converted society as those subsections apply to the procedure for the disposal of any estate or interest in residential property owned by a converted foreign company.

[9/2006]

(13) A mortgagee or chargee who, on or after 1st October 1976, grants a loan or advance on a current account for a fixed term exceeding 6 months, secured by a mortgage or charge of any estate or interest in any residential property that is not non-restricted residential property owned by a Singapore entity may, notwithstanding any prior agreement made between the mortgagee or chargee and his respective mortgagor or chargor for the repayment of that loan or advance, call for the earlier repayment of such loan or advance or any part thereof, by giving 3 months’ prior notice in writing to his mortgagor or chargor, if such mortgagor or chargor, having represented itself as a Singapore entity, to the mortgagee or chargee at the date of the creation of such mortgage or charge, thereafter, without the written consent of the mortgagee or chargee, becomes a converted entity.

[9/2006]

(14) If the repayment of the loan or advance mentioned in subsection (13) is not made on the expiration of the 3 months’ notice given by the mortgagee or chargee under that subsection, such loan or advance shall be deemed to be due, and thereupon the mortgagee or chargee may exercise —

(a)

any power expressly provided in the mortgage or charge;

(b)

any statutory power conferred on a mortgagee or chargee under the Conveyancing and Law of Property Act (Cap. 61), the Land Titles Act (Cap. 157) or any other written law; or